CHICAGO, Dec.18, 2002—UAL Corp. (NYSE: UAL), the parent company of United Airlines, today announced that the bankruptcy court denied an emergency motion to exempt State Street Bank & Trust, the independent fiduciary of the UAL ESOP, from the injunction preventing certain parties from selling substantial shares of UAL common stock. The court affirmed its previously set schedule for considering objections to the injunction at a hearing on December 30, 2002.
UAL had obtained the injunction in order to preserve its net operating loss (NOL). The company said that preserving the NOL could generate substantial tax benefits following its emergence from Chapter 11 protection, and that a change in ownership of the company prior to emergence could severely limit the use of the NOL.
The injunction prevents certain parties from selling shares of UAL common stock. These parties include holders of more than 2.5 million shares of common stock on an as-converted basis and holders of claims of $65 million or greater against UAL or United.
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